CEO turnovers due to poor industry performances: An examination of the boards’ retention criteria

IF 3.3 3区管理学 Q1 BUSINESS, FINANCE

Journal of Accounting and Public Policy Pub Date : 2024-01-23 DOI:10.1016/j.jaccpubpol.2024.107178

Lin Li , Peter Lam , Wilson H.S. Tong , Justin Law

引用次数: 0

Abstract

Numerous studies examine CEO turnover but rarely in the context of business cycles. We demonstrate that the role of the set of turnover decision parameters could change according to industry conditions. Specifically, idiosyncratic returns are more conducive to forced CEO turnover probabilities during recessions than during booms, whereas the opposite is true for industry returns. We provide evidence supporting that idiosyncratic returns are more correlated with managerial ability and stock prices are more informative during recessions. Our findings shed light on how CEOs are assessed by company boards when making turnover decisions.

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因行业表现不佳导致的首席执行官更替：对董事会留任标准的研究

许多研究都对首席执行官的更替进行了研究，但很少有研究是在商业周期的背景下进行的。我们证明，离职决策参数集的作用会随着行业条件的变化而变化。具体来说，与经济繁荣时期相比，经济衰退时期的特异性回报更有利于提高首席执行官的强制离职概率，而行业回报则恰恰相反。我们提供的证据证明，在经济衰退期间，特异性回报与管理能力的相关性更高，股票价格的信息量更大。我们的研究结果揭示了公司董事会在做出首席执行官更替决策时是如何对其进行评估的。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Accounting and Public Policy Multiple-

CiteScore

4.80

自引率

2.80%

发文量

期刊介绍： The Journal of Accounting and Public Policy publishes research papers focusing on the intersection between accounting and public policy. Preference is given to papers illuminating through theoretical or empirical analysis, the effects of accounting on public policy and vice-versa. Subjects treated in this journal include the interface of accounting with economics, political science, sociology, or law. The Journal includes a section entitled Accounting Letters. This section publishes short research articles that should not exceed approximately 3,000 words. The objective of this section is to facilitate the rapid dissemination of important accounting research. Accordingly, articles submitted to this section will be reviewed within fours weeks of receipt, revisions will be limited to one, and publication will occur within four months of acceptance.